How to use Landed Cost

Here's how to create a purchase order for an overseas vendor for an inventory shipment, that includes the Landed Cost.

1. From the Wiise role centre, select +Purchase Order. 
2. Select the vendor from the Vendor field drop-down list.
3. In the Lines section, go to the NO. field, select the inventory item with the specified weight, volume, and duty on its item card. 
4. In LOCATION, enter a location where you've enabled Require Receive.
5. In QUANTITY, enter the number of items to be purchased.
6. Now select Release from the ribbon to set the document status to Released.

The released purchase order is now available for receiving in the warehouse. 

If you want to make changes to its contents, you can select Release > Reopen from the ribbon. Then set the document to Released again to move the updated document to the next stage of processing. 

How to split a line for items delivered in part

Each purchase order line has an Order Date, Planned Receipt Date, and Expected Receipt Date. These are used to work out item availability. 

In some circumstances, you'll need to receive part of the item — the back-ordered quantity will have a separate Expected Receipt Date. So to accurately see item availability, you can split the original ordered quantity into multiple lines. 

How to split a line: 

1. In the Lines section highlight the line you want to split and select More Options. 
2. Then select Functions > Line Split. This opens the Purchase Line Splits window where the selected line is copied to 
3. In the Purchase Line Splits window, enter a new Quantity (it must be less than the original value) and the Expected Receipt Date on the first line. 
4. Then go to the next line. The Quantity field is pre-filled with the remaining value from the original line quantity. You can update both fields and add lines as necessary to split the quantity.
5. To finish, select Close to return to the purchase order page. 

The entries you've added in the Purchase Line Splits window will be added next to the original item line. You'll see the equivalent number of lines split by updated Quantity and Expected Receipt Date. 

Note: To better see item availability, we recommend that you only add complete lines to the Landed Cost Receipt. This is because the Planned and Expected Receipt Dates on a purchase order line reflect the entire quantity, not a partial quantity. 

Note: Line Split doesn't allow for automatic calculation for sales order item reservations.   

You'd create a Landed Cost Receipt when inventory items are delivered. You can create it in a couple of ways: 

• Straight from a released purchase order to a supplier or 
• From a new or open Landed Cost Receipt document. This combines several purchase orders from different suppliers sent to one warehouse location 

How to create a landed cost receipt directly from the released purchase order 

1. From the Wiise role centre, search for and select Purchase Orders. 
2. Then select an existing purchase order with the status Released. 
3. In the Purchase Order window, select Process > Landed Cost Receipt.
4. A confirmation message will show you the landed cost receipt number created, according to the Location Code used in the purchase order lines. Select OK and the landed cost receipt document will open. 
5. In the Landed Cost Receipt, you'll see the information from the purchase order copied to each line. 
6. Select Close to return to the purchase order page. 

You can view the list of landed cost documents for the current purchase order by selecting Related > Landed Cost > Receipt Lines.  

How to create a landed cost receipt for multiple released purchase orders 

1. Start by searching for and selecting Landed Cost Receipts.
2. Then select New.
3. In the Location Code field, select the location where you want to receive items.
4. You can add purchase order lines like this:
   1. On the ribbon, select Use Filters to Get Src. Docs from the ribbon.
   2. On the Filters to Get Source Docs. page, enter a description in the Code field.
   3. In Buy-from Vendor No. select the vendor that outstanding purchase order lines are from.
   4. Then select Run. All released source purchase order lines that match your filters will be added into the Landed Cost Receipt.
5. Now go to the Lines section and delete lines that aren't to be received yet: 
   1. Highlight one line or use Select More to tag multiple lines. 
   2. Select Manage > Delete .

How to post a landed cost receipt 

1. First, search for and select Landed Cost Receipts.
2. Then open an existing Landed Cost Receipt with items to be received. 
3. Fill in the Vendor Shipment No. field. 
4. Then in the Lines section, make sure that the Qty. to Receive is correct.
5. Fill in the Shipment section details.
6. Then enter a new Expected Receipt Date. 
7. Next, select Actions > Functions > Update Expected Receipt Date on Purch. Order Lines 

Note: The Expected Receipt Date and Due Date will be updated on all associated Purchase Order Lines and Landed Cost Receipt Lines. 

1. To finish, select Post Landed Cost Receipt from the ribbon. This records the items in the inventory and updates the Quantity fields on the source documents.

How to delete or change landed cost receipt lines 

Here's how to remove Purchase Order Lines from a Landed Cost Receipt:

1. Select Show more options on the line and select Delete. 
2. If you're expecting a partial quantity to be delivered, you can change the Qty to Receive on the relevant line.  

Note: To see Item Availability accurately, we recommend that you only add complete lines to the Landed Cost Receipt. This is because the Planned and Expected Receipt Dates on a purchase order line show the entire quantity, not a partial quantity. 

How to update the expected receipt date on purchase order lines 

1. First, you'll need to update the Expected Receipt Date in the Shipment section.  
2. Then select Actions > Functions > Update Expected Receipt Date on Purch. Order Lines.  
3. A time and date will be recorded on the Landed Cost Receipt, showing the last time you updated the purchase order lines. 

Note:  This will affect Item Availability and Expected Receipt Date of inventory in the warehouse. 

Note: The Expected Receipt Date = Planned Receipt Date + Safety Lead Time + Inbound Warehouse Handling Time 

How to re-open a purchase order once the landed cost receipt is posted 

If you try to re-open a purchase order when a Landed Cost Receipt has been posted, you'll see this message: Any Changes made to the Purchase line will require a re-calculation of the budgeted landed costs. 

If you then makes a change to the Direct Unit Cost Excl. GST field of the purchase line, you'll see this message: 

Do you want to re-calculate the budgeted landed costs? 

Wiise will update the budgeted landed costs based on the new cost. 

How to undo a receipt 

If you're not using Advanced Warehousing, and you make an error in the Landed Cost Receipt process, you can undo a Receipt if it's not already invoiced. 

From a Posted Purchase Receipt, select the relevant line, and select Actions > Functions > Undo Receipt. This will create a negative line on the Posted Purchase Receipt and also update the original purchase order. 

When you receive your inventory items, you'll need to create and post the related invoice. You can do that directly from the purchase order. Or by creating a new invoice to combine purchase receipts from the same vendor in a shipment. Purchase receipts are identified by the Vendor Shipment Number. If you have multiple vendors in one shipment, you'll need to create more than one purchase invoice. This combines the relevant purchase order lines posted, and shows them as received but not invoiced from each supplier.

How to create a separate invoice to vendors

1. First, select Purchase Invoices. 
2. Then select New. 
3. In the Vendor field, select the vendor from the list. 
4. Under Actions, select Landed Cost then Get Vendor Shipment Lines. 
5. Now select one or multiple lines that you want to include in the invoice. 
6. If you select an incorrect receipt line or you want to start over, you can delete the lines on the purchase invoice. Then use the Get Vendor Shipment Lines function again. 
7. Finally, select Post. 

How to remove open purchase orders after posting combined receipt

When you create purchase receipts for a vendor from a single purchase invoice, the original purchase document won't be deleted —even if the order is fully received and invoiced. Here's how to delete those purchase orders: 

1. From the main navigation menu, select Landed Cost > Purchase Order Lines. 
2. Then select Actions > Delete Invoiced Orders.
3. Now enter the filter options in any of the following: 
   • Document No. 
   • Buy-from Vendor No. 
   • Pay-to Vendor No. to delete all purchase orders from this vendor 
4. Select Ok.  Any purchase orders that match the filter options will be deleted (if all relevant lines are received and invoiced). 
5. This updates the Quantity Invoiced on the original purchase order. But the original purchase document won't be deleted even if it has been fully received and invoiced. You'll need to delete it. 

You'll need to create a purchase invoice for each vendor you're paying landed costs to. Wiise uses Item Charges for each charge type, such as freight, cartage, insurance and duty. 

How to create a purchase invoice for Landed Cost 

1. Search for and select Purchase Invoices. 
2. Select New. 
3. In the Vendor field, select the supplier who the additional cost will be paid to. 
4. In the Lines section, go to the TYPE field and select Charge (Item). 
5. In the NO. field, select the relevant landed cost. This will update the APPORTION METHOD field on the purchase invoice line. 
6. In the QUANTITY field, enter item charge units you've been invoiced for. Normally this is 1. 
7. In DIRECT UNIT COST, enter the amount of the item charge. 
8. On the Lines section ribbon, select More Options > Line menu > Landed Cost group > Lookup Vendor Shipment No.  
9. On the Posted Landed Cost Receipt List page, select the vendor shipment number that the additional cost applies to, and then select OK. 
10. Repeat steps 4 through 8 to add new lines for item charges for this vendor. 
11. On the Lines section ribbon, select More Options > Line > Landed Cost > Calculate Landed Cost action. 
12.  This distributes item charges based on their apportion method (amount, quantity, weight, volume, duty, or equally), to each item on the posted landed cost receipts. This will show within the VENDOR SHIPMENT NO. of each invoice line. 
13. In the QTY. TO ASSIGN field, select the value to open the Item Charge Assignment (Purch) window. From here you can review how a particular charged is distributed. 

Note: Sometimes weight, volume and duty are used but don't get an additional cost. This is because the item had a blank Net Weight, Unit Volume and Duty Due % when you created the original purchase order. You can fix this by selecting Actions > Landed cost > Update Landed Cost Fields on Purchase Receipts. 

1. To post the invoice, select Post. This updates the item’s inventory value with the cost of the item charge. 

How to update weight, volume, duty 

You might have items that haven't been given the correct proportion of the landed cost by weight, volume, and duty. Here's how to update this: 

1. Search for and select Items. Then select the relevant item. 
2. In the Warehouse section of the Item card, make sure these fields have the right value: 
   1. Duty Due % 
   2. Unit Volume 
   3. Net Weight 
3. Then from the Purchase Invoice or Posted Purchase Receipt, select Actions > Landed Cost > Update Landed Cost Fields on Purchase Receipts. 
4. In the pop-up that opens, enter the date range of the posted purchase receipts in the Start Date and End Date fields 
5. Select the value you want to update:
   1. Update Weight 
   2. Update Volume 
   3. Update Duty % 
6. Then in the Item section, select NO. in the Where field, and select the item description in the Is: field. 
7. Select OK to finish.  

Note: This updates all items with zero values. And it updates all values on the posted purchase receipt lines that match your chosen filter options.